Corrugated Automotive Packaging Market

2020 Analysis and Review: Corrugated Automotive Packaging Market by Layer Type – Single Face, Single Wall, Double Wall, and Triple Wall for 2020 - 2030

Introduction

The role of corrugated packaging in the automotive industry has been growing strongly in recent years. Innovations and growing adoption of electrical and electronic components in varying automotive products is expected to contribute to the industry in the long term. The global penetration of the automotive aftermarket and original equipment manufacturer (OEM) supply chains are likely to bolster market prospects in the years to come.

As per a recent report by Future Market Insights, the market for corrugated automotive packaging is expected to display steady growth crossing a valuation of US$ 2.6 billion through the end of 2030 at 4.4% CAGR. Automotive lighting packaging applications will account for significant market share for the foreseeable future, with niche applications in engine and battery packaging reflecting health growth for the foreseeable future.

The corrugated automotive packaging market has risen steadily in the past few years, as players in the automotive sector have been increasingly investing in sustainability and recycling technologies in line with changes of consumer bias. With automobiles finding applications in a wide range of end use sectors, customization in packaging requirements will also gain importance.

Environmental Concerns Aid Market Developments

The global automotive industry has been strongly influenced by developments in terms of passenger comfort, electrification, autonomous operations, and connectivity technologies. Further, strict government regulations associated to environment and emissions are anticipated to contribute to changes in automotive production, components, and functionality.

The industry is witnessing increased penetration by semiconductor technologies, supported by the strong rise in the proportion of electronics in modern automobiles. Also, strict regulations on quality standards of automotive components, coupled with efforts by market players towards cutting costs for OEMs and aftermarket suppliers are likely to contribute to the demand for corrugated packaging.

Also, as robotics and innovations in advanced driver assistance systems (ADAS) gain ground in the automotive industry, the requirement of highly sensitive sensors is likely to rise rapidly, which in turn will require customized packaging for safety through the logistics chain, creating lucrative opportunities in the long term.

Foam and Plastic Alternatives Gain Interest

Paperboard has increasingly become a popular option in the automotive packaging industry, driven by recycling technologies and sustainability initiatives being taken up by market players. However, corrugated plastic remains a very popular option owing to low costs and low weight, in addition to superior flexibility in terms customization for packaging containers, higher moisture resistance and high-density material options.

Plastic corrugated automotive packaging can also resist punctures, impact and tears, while being strongly resistant to dust, allowing for long-term reusable applications for a range of storage and transport environments and temperatures.

Furthermore, foam-based options are also gaining interest from players in the packaging industry owing to high levels of customizability, strength, and impact resistance. Also, these materials provide resistance to electrostatic discharge, which makes it ideal for the growing use of electronics in automotive components.

Key Challenges

The trajectory of the corrugated automotive packaging market is expected to be largely positive between the years of assessment from 2020 to 2030. However, market players are likely to face a number of challenges during this period.

For instance, development of customizable corrugated packaging solutions is fairly capital-intensive, with a high cost of setup in terms of manufacturing facilities. In addition, frequent innovations and upgrades are also cost-prohibitive, limiting market developments to players with larger capital facilities.

Furthermore, this issue of cost will limit entry to small and medium scale enterprises with higher cost per unit holding back initial investments, limiting return on investment in the long term.

Region-wise Insights

East Asia Corrugated Automotive Packaging Market

East Asia is currently the largest market for corrugated automotive packaging, and is anticipated to account for a valuation of more than US$ 814 million through the end of the forecast period. The growth of this market can be largely accounted for by rising demand for reusable packaging particularly, from the vast automotive market of China for cost savings, sustainability, and safety standards.

Growing consumer awareness about options in sustainable packaging materials, coupled with strong prospects in automotive, aerospace, and electronics are also likely to contribute to product demand in the long term.

Players in the East Asian corrugated automotive packaging market are more likely to focus on strategic collaborations and acquisitions and capacity expansions, aimed towards the expansion of customized solutions in product portfolios.

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South Asia Corrugated Automotive Packaging Market

The South Asian market for corrugated automotive packaging is expected to reflect moderate growth of over 4% between 2020 and 2030. Following East Asia, the region is projected to be the second largest in the world, with India, Indonesia and Thailand contributing substantially to corrugated packaging volumes.

The South Asian market is expected to be strongly driven by growth in awareness about the environment among end users, and the resultant demand for sustainable packaging, coupled with the rise in per capita income, which aids in automotive sales.

The demand for corrugated boxes with higher crush resistance and strength for stacking applications without compromising on weight will be critical to the market. However, the uncertainties associated with the severity and duration of the coronavirus pandemic, and its effects on the automotive industry are likely to impact growth.

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North America Corrugated Automotive Packaging Market

North America, led by the United States is a notable contributor to market developments. The region in recent years has witnessed a substantial influx in investments for recycling capabilities, which in turn expands the scope of application for corrugated packaging for the regional automotive sector.

Furthermore, research and regulation initiatives by bodies such as the Fiber Box Association are aiding in the development of corrugated packaging with reduced risks of contamination, which will remain essential in terms of automotive components comprising electronics, generating lucrative growth opportunities for the long term.

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Category-Wise Insights

Double Wall Packaging Formats Remain Popular

Corrugated automotive packaging can be segregated on the basis of layer type into single face, single wall, double wall, and triple wall. Of these materials, double wall corrugated packaging formats are likely to reflect higher demand through the forecast period.

The demand can be attributed to performance and cost benefits. For instance, double wall packaging requires lesser raw material to manufacture in comparison to solid wall alternatives. Also, corrugated formats help in maintaining compression, abrasion, weathering, and chemical resistance bolstering the strength of the pipe.

Preference towards Corrugated Boxes

Corrugated packaging in the automotive sector is available in the forms of boxes, crates, trays, corrugated partitions, corrugated pallets, octabins, and PoP displays. Of these variants, the demand for boxes is substantially higher accounting for 39% of the market value through 2030, and the trend is unlikely to change for the foreseeable future.

The high costs associated to bio-degradable plastic packaging, ease of logistics, and consumer awareness towards environmental impact of varying packaging formats are likely to drive adoption in the automotive sector.

Lighting Component Packaging Applications on the Rise

Packaging in corrugated formats will find applications for a number of automotive components including automotive filters, battery, engine components, lighting components, underbody components, electrical components, and cooling systems.

Of these automotive parts, lighting components are expected to contribute substantially to global revenue shares owing to the presence of electronic components, and the resistance of corrugated packaging to accidental discharge, and higher compression strength, minimizing risk of  damage from impact.

Competitive Landscape

Participants in the corrugated automotive packaging market have been observed investing in product development efforts, to consolidate their position in a fairly competitive market. Also, market players are also investing in strategic acquisitions and capacity expansions in line with growing global demand for corrugated packaging formats for automotive component supply chains.

Sealed Air Corporation has unveiled its Korrvu brand of retention and suspension packaging aimed towards the storage and transport of varying goods including automobile parts. The company has also introduced automated high performance, recyclable, carton packaging solutions aimed towards cutting operational costs. Furthermore, AFP Inc., a specialist in engineered packaging solutions has been acquired by Sealed Air, to expand the portfolio of the Product Care division.

Sonoco Products Company has announced plans to invest US$ 16 million in terms of expanding an existing facility in Alabama. The project is intended to push for research into water-based coatings with paperboard and coated paper substrates, which will have important roles in the production and application of corrugated packaging formats. Also, the expansion of the company portfolio will include core board, corrugated pallets, aiding market prospects for the foreseeable future.

Mondi Group has announced an investment of 30 million euros for the companies corrugated packaging facility in Ansbach, Germany, with increased focus on automotive sector applications. The investment will be used for the installation high tech corrugator for triple walled corrugated boxes for cost and sustainability benefits.

Aside from these market participants, other major players include:

  • International Paper Company
  • WestRock Company
  • Greif Inc.
  • DS Smith Plc
  • Smurfit Kappa Group Plc
  • Nefab Group
  • Elsons International
  • Orcon Industries

The list is only indicative – full list of corrugated automotive packaging market key players is available upon request.

Corrugated Automotive Packaging Market Report: Scope

Attribute

Details

Forecast Period

2020-2030

Historical Data Available for

2015-2019

Market Analysis

US$ Million for value, Tons for volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East & Africa (MEA)

Key Countries Covered

US, Canada, Brazil, Mexico, Argentina, Germany, Italy, France, U.K., Spain, BENELUX, Nordics, Russia, Poland, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa

Key Segments Covered

Layer Type, Product Type, Automotive Parts, and Region

Key Companies Profiled

International Paper Company, Sonoco Products Company, Mondi Group Plc, Sealed Air Corporation, WestRock Company, Greif Inc., DS Smith Plc, Smurfit Kappa Group Plc, Nefab Group, Elsons International, Orcon Industries

Report Coverage

Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

 

Customization & Pricing

Available upon Request

Key Questions Answered by the Report

  • What is the size of the corrugated automotive packaging market?

    The global corrugated automotive packaging market surpassed a valuation of US$ 1.7 billion in 2019. The growth rate for the industry will estimated at a moderate 4.4% CAGR between 2020 and 2030.

  • Which is the largest market for corrugated automotive packaging products?

    East Asia is the largest market for corrugated automotive packaging, driven largely by the presence of major automotive production facilities in the region, and benefits of lower material and labor costs.

  • Which are the top companies in global corrugated automotive packaging market?

    International Paper Company, Sonoco Products Company, Mondi Group Plc, Sealed Air Corporation, WestRock Company, Greif Inc., DS Smith Plc, and Smurfit Kappa Group Plc are among the more prominent players in the market.

  • What are the applications of corrugated automotive packaging?

    Corrugated automotive packaging is primarily used to protect automotive parts for storage and movement in supply chains from producers to end users, with varying formats at different levels of use.

  • In which types are corrugated automotive packaging products available?

    Companies usually produce corrugated automotive packaging in 4 types – single face, single wall, double wall, and triple wall. The demand for double wall packaging solutions is expected to be relatively stronger through the forecast period.

  • What is the outlook of Europe in the corrugated automotive packaging market?

    The European corrugated automotive packaging market is relatively strong growth, supported by a mature, regional automotive production and aftermarket industry, surpassing the North American market before the end of the forecast period.

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample and it will be sent to you through an email.

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Key Segments

Layer Type

  • Single Face
  • Single Wall
  • Double Wall
  • Triple Wall

Product Type

  • Boxes
  • Crates
  • Trays
  • Corrugated Partitions
  • Corrugated Pallets
  • Octabins
  • PoP Displays

Automotive Parts

  • Automotive Filter
  • Battery
  • Engine Components
  • Lighting Components
  • Underbody Components
  • Electrical Components
  • Cooling System

Regional Outlook

  • North America (US, Canada)
  • Latin America (Brazil, Mexico, Argentina, Rest of LATAM)
  • Europe (Germany, UK, Russia, France, Italy, Spain, BENELUX, Nordics, Poland, Rest of Europe)
  • South Asia (India, Thailand, Indonesia, Malaysia, Rest of South Asia)
  • East Asia (China, Japan, and South Korea)
  • Oceania (Australia and New Zealand)
  • Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa, and Rest of MEA)

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